MCLEAN, Va., Dec. 10, 2018 (GLOBE NEWSWIRE) -- Gladstone Land Corporation (NASDAQ: LAND) announced that it has acquired a 761-acre farm in Merced County, California, for approximately $8.2 million. The farm consists of 742 planted acres of almond trees and is irrigated with five on-site wells. Upon acquisition, Gladstone Land entered into a long-term lease agreement with an international agriculture company that currently leases two of the Company’s other almond orchards.
“This almond orchard is immediately adjacent to another almond orchard we own, and both farms will be rented to the same tenant,” said Bill Reiman, Managing Director of Gladstone Land. “This is especially advantageous to the tenant because both farms can be operated as one. This is another purchase where we acquired only the land, while the tenant retains ownership of the improvements until termination of the lease, at which time the improvements belong to us. We believe this is a low-risk acquisition that will yield a strong cash return.”
“This is another farm acquisition that will be operated by a premier tenant whom we know well,” said David Gladstone, President and CEO of Gladstone Land. “This almond orchard is our third acquisition of the quarter, and we continue to have a long list of potential farms to purchase. We look forward to 2019 and believe it will be another good year for us.”
About Gladstone Land Corporation:
Gladstone Land is a publicly-traded real estate investment trust that invests in farmland and farm-related properties located in major agricultural markets in the U.S., which it leases to third-party farmers. The Company reports the current fair value of its farmland on a quarterly basis; as of September 30, 2018, the estimated net asset value of the Company was $13.79 per share. Gladstone Land currently owns 85 farms, comprised of 73,205 acres in 10 different states across the U.S., valued at approximately $618 million. Its acreage is predominantly concentrated in locations where its tenants are able to grow fresh produce annual row crops, such as berries and vegetables, which are generally planted and harvested annually; as well as permanent crops, such as almonds, blueberries, and pistachios, which are planted every 10 to 20-plus years. The Company may also acquire property related to farming, such as cooling facilities, processing buildings, packaging facilities, and distribution centers. Gladstone Land pays monthly distributions to its stockholders and has paid 70 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The current per-share distribution rate on its common stock is $0.0444 per month, or $0.5328 per year. Additional information can be found at www.GladstoneLand.com and www.GladstoneFarms.com.
